Dennis Cardoza, D-Calif., has reintroduced the Housing Opportunity Mortgage Equity Act (HOME) to the US House of Representatives. The bill would offer as many as 30 million borrowers with mortgages backed by Fannie Mae and Freddie Mac the opportunity to refinance at historically low rates.

The best part of the bill is that it leverages the government’s conservatorship of Fannie and Freddie; after all they’re ours, and should do as we say.

Under the proposed legislation, anyone with a loan backed by the two mortgage giants can refinance, whether the loan is current or in default. Fannie and Freddie would issue new mortgage-backed securities to fund the refinanced mortgages, while using the proceeds to pay off the existing mortgage-backed securities.

According to Cardoza, this would result in an annual reduction of $50 billion in mortgage payments for borrowers while reducing foreclosures dramatically.

Read this to see what Moody’s Chief Economist Mark Zandi has to say about it.

In this editorial, Cardoza notes that the government has already shelled-out $70 billion for foreclosure stabalization programs that haven’t worked.